PNB to start operations in Canada, Singapore

Public sector lender Punjab National Bank is planning to open offices in Canada and Singapore to expand its presence overseas.

Public sector lender Punjab National Bank is planning to open offices in Canada and Singapore to expand its presence overseas.

"Our immediate plan includes creating a strong international footing for the bank. We are looking at Canada and Singapore," PNB Chairman and Managing Director KC Chakrabarty said.

The bank would open a subsidiary in Canada, which would perform all the retail transactions. However, an offshore banking branch would be opened in Singapore.

When asked about the timeframe by which the bank would be able to start its operations, Chakrabarty said the application was pending before the regulators.

Meanwhile, the bank has already commenced its operations in Hong Kong branch from December 17, 2007.

The lender already has a subsidiary in the UK and a branch in Kabul. The Delhi-based bank also has representative offices at Dubai, Shanghai and Almaty.

The representative offices in Dubai and Shanghai would also be upgraded, he said, adding that these were the long- term plans of PNB.

Meanwhile, the bank also plans to raise Rs 4,000 crore through bonds to augment its capital resources.

"The bank has space of Rs 4,000 crore. I have asked treasury that whenever they feel appropriate, the bank would raise funds," he said.

The bank has raised Rs 1,100 crore in the past few months, he said. In December, PNB raised Rs 800 crore through bonds. Of this, Rs 500 crore was raised from Upper Tier-II Bonds through private placement. Another Rs 300 crore was raised by way of Tier-I Perpetual Bonds.